Investors / Equinox Gold Corp. Transaction

Details


CREATING A LEADING MULTI-ASSET GOLD COMPANY

Trek Mining (TSX-V: TREK), NewCastle Gold (TSX: NCA) and Anfield Gold (TSX-V: ANF) have announced a plan of arrangement to combine their businesses, creating a multi-asset gold company with an exceptional platform for growth. The combined company intends to change its name to Equinox Gold Corp. and expects to trade on the TSX-V under the ticker symbol “EQX”. The companies will host a webcast​ on October 25, 2017 at 12pm PST to discuss the transaction.

Transaction Highlights

  • Near-term and growing gold production: First gold pour from Aurizona targeted for year-end 2018 with expected average annual production of 136,000 ounces; potential to significantly increase production with subsequent mine development at Castle Mountain
  • Robust project portfolio: Multi-asset gold and copper portfolio including two advanced-stage gold projects in well-established mining jurisdictions
  • Substantial gold resource: Combined Measured and Indicated gold resources of 5.8 million ounces (inclusive of reserves) and additional Inferred gold resources of 2.5 million ounces
  • Significant exploration potential: Potential to increase resources at Aurizona and Castle Mountain with expansion drilling currently underway at both properties, with upside from a portfolio of highly prospective early-stage gold and copper properties
  • Strong financial platform: Approximately C$92 million in cash, ability to realize corporate-level synergies and potential to monetize non-core assets. Well-funded with a proposed US$85 million credit facility to fully fund the construction of Aurizona, and conditional access for up to US$200 million in funding for future project development and acquisitions, providing significant capacity to develop Castle Mountain and continue to grow the company
  • Strategic leader and shareholder: Ross Beaty will join as Chairman and become a significant shareholder, owning approximately 9% of Equinox Gold shares post Transaction close
  • Experienced leadership team: Executive team and directors are invested shareholders with significant technical, construction and operations experience

 

The Properties, the People and the Plan for Success

Led by Ross Beaty as Chairman and Christian Milau as CEO, Equinox Gold will be a well-financed gold mining company with a near-term strategy to become a profitable, multi-asset, low-cost gold producer.

Equinox Gold will have a multi-million-ounce gold resource base, near-term and growing gold production from two past-producing gold mines in Brazil and California, an impressive growth profile with a pipeline of gold and copper projects in Ecuador, Chile, Mexico and Canada, and an operational gold processing facility in Peru. Both the Aurizona Gold Mine in Brazil and the Castle Mountain Gold Mine in California have the potential to be long-life gold mines in well-established mining jurisdictions, with first gold pour from Aurizona targeted for year-end 2018 and significant production potential from Castle Mountain.

The Company’s earlier-stage projects provide a development pipeline with both jurisdictional and mineral diversity. In addition, the Company is reviewing options to monetize a portfolio of non-core assets, further bolstering the Company’s strong treasury and funding exploration and development at its flagship properties.

Equinox Gold will be led by an experienced executive team that has advanced multiple projects from exploration through construction and into production. The Company’s Board of Directors will include some of the industry’s most respected technical and business leaders, with Ross Beaty as Chairman. The Company’s executive and directors have personally invested in the company and hold approximately 10% of the shares, ensuring their interests are aligned with investors.

Next Steps

Closing of the transaction is subject to customary conditions including court and regulatory approvals and the approval of the securityholders of NewCastle Gold and Anfield Gold. A joint information circular detailing the terms and conditions of the transaction will be filed with regulatory authorities and mailed to securityholders in accordance with applicable securities laws. The special meetings of NewCastle Gold and Anfield Gold are expected to be held in mid-December 2017, with completion of the transaction anticipated before year-end 2017.

Additional information about the proposed transaction is available in the transaction press release. Further information about the asset portfolio is available on Trek’s website and on the websites of NewCastle Gold and Anfield Gold.

Thank you for joining the conference call/webcast on 25/10/2017 at 4:30 PM EST.d

Link to Webcast